It has been reported that in the United States there are 42.4 million people (approx. 25%) whose credit scores (FICO) are below 599, in comparison with the 25.5 million (approx. 15%) whose scores were below 599 before the meltdown. Add to that the fact that 26 million people are out of work with many foreclosures pending and you can see where this is going.
There is a difference between people who were unwillingly placed a situation that caused them to make a choice between paying their bills or feeding their family, and those who chose to “strategically default” on their loans. Strategic defaulters are people who can afford to pay their bills but choose not to. They know their credit scores will be affected and the make their plans ahead of time to compensate for their diminshed scores.
Not everyone who defaults on a loan has a choice; and I feel they should be given special consideration once they are back on their feet and capable of making payments. Their credit scores should not be treated the same way
These are just my thoughts as I consider the situation we are in right now. As a Realtor I know that there are a lot of people who deserve a second chance. Financial reform has to happen and it has to happen sooner than later or there will be a lot of people unable to buy a home any time soon.